tv Markets Now FOX Business September 7, 2012 1:00pm-3:00pm EDT
in the yoga pants. thank you so much. i am melissa francis. lori: happy friday. i am lori rothman. the unemployment rate falling to 8.1%. it is not because of improvement. it is because people gave up. melissa: wow. causing a big selloff. investors betting that their jobs report will move the fed to act next week. we will see what lies down the road. lori: our economic news is what kind of impact is it having on the campaign trail. we had president obama speech last night. scott rasmussen will share his latest poll results.
melissa: time for stocks now as we do every 15 minutes. our own nicole petallides is standing by. nicole: yesterday we had these major market averages at multi- year highs. the dow closed at the highest level since 2007. the nasdaq 12 year highs. we are really at crucial levels here. going nowhere fast. they had to adjust the week job numbers. stocks pulled back a little bit. i want to take a look at two names weighing on the dow. that is intel and kraft. looking at intel in particular. they gave their revenue outlook for the next quarter. it is very weak. they are saying they are seeing lower demand. there is no doubt that the
global economy has been under pressure. then you look at kraft. they will be splitting into two on october 201. those shares are below the estimates. both of these names are under significant pressure today. melissa: nicole, thank you so much. lori: disappointing jobs picture for the month of august. more and more americans dropping out of the workforce. rich edson joins us now to break down these numbers. nicole: 96,000 jobs created. not enough to keep up with population growth. the unemployment rate falls to 8.1% but that is largely because the labor force the client. republicans are calling this the hangover two last night democratic convention. the white house is claiming some economic progress.
>> we need to look at the report and i also think you need to look at it in the context of other recent reports. the numbers will move around. the u.s. economy is very hard to measure. we seek and continued trend of the economy expanding. more people finding jobs. >> for every new job created about four people dropped out of the workforce. we are going in the wrong direction. no increase in wages. declining number of people being able to find work. people dropping out of the workforce. it is another continuation of very weak noose on the employment front. >> back to you. lori: thank you, rich. the commodity market is mostly higher following the jobs report. natural gas is taking a bit of a
head. what was that all about? >> it was a little technical glitch. no trades were thrown out. it was just a little computer problem. they got it back up and running. i don't think a lot of traders missed a whole heck of a lot. it is down for a historical reason. yesterday's injection report, for the first time ever, it went above 3 trillion cubic feet. that is the start. i think that is weighing on the market right now. we are not even at the end of refill season. those supplies will be more than ample. that will take away some of the bullish tension. melissa: oil is trading higher today. >> yesterday a couple of the
private trading websites came out and said there would be a relief from the petroleum reserve any minute. the truth of the matter was it was talked about in the white house with some energy experts. they were just asking them questions to see what they would do. the real story is gas came roaring right back. melissa: it is not like it had a long-term impact anyway. lori: it has been nearly a year since mf global filed for bankruptcy. it may be difficult to file charges against former ceo john corzine. the investigation continues. charlie gasparino has the latest. charlie: cftc is the front-line regulator for commodity brokerage firms. no charges yet. embarking upon a year. but the speculation are run by appointees of the obama
administration. guess what john corzine once was, one of the largest wall street campaigners. here is what we know right now, the cftc commissioners will get an update on the mf global investigation next week. this will come from the staff. the staff, as you know is run by a guy named gary gensler. mr. gensler has recused himself from the investigation officially. he used to work with john corzine at goldman sachs. this is a sticky, political investigation. they will get a briefing next week on the investigation. here is what we think is, the stuff they will hear. the staff had yet, and i find it amazing, as yet to interview or to post, they may depose post or interview, it makes no difference, it is a legal setting in any event. edith o brian, is at the center
of this confusion. the last days before they blew up. that money, that custom of money was missing. why have they not talk to her rucksack this is what they will find out. the status of her talks with the justice department. what she wants his community. the justice department, from what i understand, is balking at this community. this, to me, is a bizarre. the reason why is, you know, the justice department is worried edith o brian they have a lot of culpability. she can say what happened in not get charged. even though it may have stopped with her. that is what they are thinking. other people think she holds the keys to the information about what john corzine knew and what he did not know about those final days about whether he gave the go-ahead to use customer funds which were obviously
misused. what is this bizarre to me? why does anyone care whether edith o brian made a mistake or give someone the okay. she is not a major player in this. what they really want to know is whether a top fundraiser from the obama administration, one of wall street's leaders did something wrong. was it civil? we do not know. or was it just feckless. they used to call him but the over at goldman sachs. was that the right reason why, you know, he did not know what was going on and customer money went missing. that is not necessarily a crime. you could be sued civilly, but it is not necessarily a crime. that is where we are right now.
we should point out the cftc on the civil basis, remember, there is usual civil criminal. they are probably the lead agency investigating this. melissa: all right, charlie will always on top of it. thank you so much. up next, wait until you hear how much money the healthcare industry is wasting each year. it is enough to pay for uninsured americans. it is even more than the pentagon budget. elizabeth macdonald get to the bottom of it. lori: we do want to show you metals. they are rising on expectations we will get monetary easing next week. melissa: look at copper. lori: you have easing, a depressed dollar .yup commodities rising. back with more after this. ♪ tdd#: 1-800-345-2550 you should've seen me today.
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>> $750 a year. here is the deal. it comes from the institute of medicine. it is an influential nonpartisan group that has been out there for years. they have been examining this issue. they have found $750 billion annually. that would cover ten years of those medicare cuts that both sides are talking about. it would cover the 716 million medicare cuts. on necessary services. 210 elegant dollars a year for that. administrative costs $190 billion. delivery of care 130 logan. of course, fraud is also cited in the report. this comes at a really interesting time. this has been an issue about cutting out waste in the system
first. melissa: how subjective is this? how did they do find this? >> what they did was, i read the report, they basically looked through how the services are paid for. i have to mention, too, it is worth noting, on this panel, they talked about this, 18 people can't these are doctors, people in the health services industry, they took a very sharp view of this. it is more than the pentagon budget. it would be more than enough to care for the uninsured. lori: what is the realistic idea that you could recoup some of this money? >> that is what they are asking. that is exactly the questions they are asking. the institute of medicine, they are saying we urge a frank discussion with healthcare providers and the government to
talk about bringing the $750 million out of the system first. melissa: we talk about the extra tests and services. that is to avoid doctors being sued down the road. you sort of need tort reform. >> that is right. one big chunk of it, $105 billion for inflated cost. that is overcharging. fifty cents of every healthcare dollar goes to fees. that is what the report is saying. lori: yet another disturbing report. as we do every 15 minutes. let's go to the floor of the new york stock exchange. pandora getting hammered today. nicole: but we talk about music you talk about pandora and apple. now there will be some stiff
competition. apple is now looking to have a very similar type of service streaming using that is basically streamed right to the taste of the user. this would directly compete with pandora. they talked about advertising growth and global on the mobile devices. this will hit them very hard. pandora down 18%. apple, on the other hand, hit an all-time high. it is that it could be months before the service is launched. this is a very big deal. this may be a preinstalled app on the device according to the "new york times." melissa: thank you, nicole. only 96,000 jobs were added. only 368,000 people dropped out of the labor force. lori: talk about disturbing. melissa: is our recovery about to shift into flow from reverse.
michelle girard is coming up after the break. i love her. lori: she has a great analysis and forward looking shots. look at the dollar and how it is bearing against major trading. that is the highest euro we have seen in many weeks. yesterday we got word of that european bond buying program. stimulus from europe still helping our economy. back with more after this. ♪
>> at 22 minutes past the hour i have your fox news minute. sixty-four people are dead following a series of earthquakes and southwest china. that number is expected to rise. it leveled houses and triggered landslides. the government says nearly 30,000 homes have been destroyed or damaged. two bombs have gone off in serious capital. it killed at least five policemen. a second bomb went off near to government ministries. no casualties are being
reported. campbell soup can is familiar to many of us. the company wants to move on. the world or just super company is looking for flavors that appeal to younger customers. they plan to roll out 50 products such as moroccan style chicken in the coming years. those are your news headlines on the fox business network. melissa: my whole house except for me eat chicken with stars. don't mess with the classics, and both. >> keep them and add a little bit of twist. melissa: thank you so much. only 96,000 jobs were added in august. the participation rate fell to its lowest level since 1981. i did not realize it was that long. is qe3 around the corner? joining us now is michelle
girard, senior economist at rbs. thank you so much for joining us. we love when you come on the show to talk jobs with us. >> thank you for having me. melissa: what is your take on this report? >> we were all waiting for these numbers. it is hard to think that that policy turned on one particular number. it was not strong enough. they laid out in the minutes of the last meeting, they said they were inclined to act unless the economy sustainably improved. these numbers did not show that. we will see action. melissa: @lots of people that thought they would not act before the election because it does signal that things are pretty bad. >> i hear that a lot. too close to the election.
certainly the october meeting would be to close. i don't think politics entered into the fed decision making at all. i heard some people think the fed was joyfully late to make that opportunity to miss the point. very clear that they will do what they need to do. it does not matter about the elections or potential backlash from the republicans. if they think the economy needs support, they will act. lori: so many more questions to follow up with you, michelle. what really struck me was the fact that july was revised downward and june had a second downward revision. how reliable are these numbers from the government? >> you are right. we have down revision on top of that disappointing august number. over the last three months, we have only seen job growth of 94,000. the fed chairman himself said you at least need 100,000 to
keep the unemployment rate steady. we are not even making that low mark. i think we are saying that ongoing stagnation in the labor market. i think it is really uncertainty that is behind it. the last couple of days we have actually seen some evidence that hiring plans going forward have picked up a bit. i think that what is happening is no one wants to hire right now because there is so much uncertainty. they are actually falling behind. they could hire a couple more workers. they are planning to do so if we can come out of this year and fiscal cliff. without the economy hurting. lori: how much labor can a company squeeze out of a worker at this point? >> that is exactly it. they have been using product hippity. do not get me wrong, the economy is not growing so fast that
companies have to be beefing up their workforce significantly. it is going enough. i do think on the margin as long as we continue to expand, you do need to do some adding to staff. i don't think that is happening proficiently enough. the bottom line is, right now, there is no momentum for the economy or the labor market. that will be the trigger for the fed to provide more support. lori: ben bernanke said structural unemployment it can be fixed. he was optimistic about that. are you as well? >> it is structural. even if the economy was going better, would it still be hi? if things picked up, we would see the unemployment come down. he thinks it is physical.
it will bring the unemployment rate down. i think that, again, is a cornerstone of his view. melissa: michelle girard, always brilliant. thank you so much. lori: indeed you are. thank you so much. i will be playing the role of lou dobbs tonight. you will not want to miss that. it is on it 7:00 p.m. and 10:00 p.m. melissa: i am going to change the graphics. he does not mind. just leave it that way when he comes back. you are also the leader. neil cavuto. that is a lot of pressure. lori: the pressure is on. we will continue with this hour. we have a lot of news to get to. who is ahead in the all important swing states. we will find that all out in a bit when scott rasmussen is back
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released by suntrust yesterday basically net positive. there is a look at suntrust up about 3%. when you look at some of the other banks such as citigroup and goldman sachs and bank of america, bank of america has been a leader on the dow jones industrial average lately. jpmorgan would be in there as well. there is a look at morgan stanley up 4%. barclays, threw that in there. they're doing better past couple days. that got a upgrade from deutsche bank. lori: thank you nicole. >> today's job report making finding work not any easier for two million veterans in the labor force. fox news's phil keating joins with more on this. phil? >> reporter: two million veterans serving in afghanistan and iraq and sometimes both. after fighting for their country and putting their lives on the line overseas for a lot of veterans when they get back to the states it is a very challenging transition to go from warrior, well, domestic
civilian job aply can't. that has been the issue for several, several years. look at department of labor numbers came out this morning. 8.1% unemployment rate. for veterans it is substantially higher, 10.9%. afghanistan war veterans and domestic employers don't realize the special skill set that veterans bring to the work place, like leadership, adaptability, discipline and mission accomplished mentality. braxton served his country five years ago in iraq loading up f-16s with bombs and missiles. when his tour ended and returned home took him five long months after try after try after try to land a job he got with ryder corporation managing truck drivers. the secret to getting hired, was not accepting word no. >> took me a while to get my foot in the door. mainly showing up every day and telling them i'm not
going away until i got the job. >> reporter: as more employers frequentlyly realize a veteran is looking, jpmorgan chase, verizon and ryder which hopes to hire 1,000 veterans by the end of the next queer. -- year. >> the leadership skills you find in young veterans, 21, 2222-year-olds we are simply hard-pressed to find in the civilian world. >> reporter: out of pennsylvania today, republican senator pat toomey offering up bill that could create a internet search engine with veterans and matching them up with jobs out there. lori: phil, many thanks. on the heels of this morning's disappointing job number. rasmussen out with the late he'll employment results. joining us rasmussen
report's scott rasmussen. thanks for coming to the show. rasmussen employment index shows confidence is drifting. tell me more about it. >> that's right. we put out the employment index a couple days before the jobs report every month. this shows 21% workers report firms are highering. 23% report layoffs that is discouraging trend. second month in a row that layoffs topped hiring. it is worst numbers we've seen in ten months. on top of that, we asked a question about, when you leave this job, will it be your choice? 62 percent of the workers say yes. that is down 12 points from july. it is down 19 points from may. it is the lowest we've seen in three years. if you're making a choice to leave your job that's a good thing. if somebody else is making it for you that's a problem. lori: that makes sense. what are your survey findings about those of us lucky enough to have a job? with are we more or less confident we'll be able to keep them? >> no. insecurity is rising.
29% of workers tell us they're concerned about losing their job in the near future. that is up four points from a month ago. and it is the highest level of concern since last october. you know, all of our economic indicators tell us similar story. confidence, whether it was about jobs or overall economy was higher in the first quarter of this year. it's been drifting downwards. and, we're not quite as bad as things were say, in 2009 or 10 but we're not nearly as positive about things as we were earlier this year. lori: so let's bring it to the politics of all this. the conventions are now behind us. you do a daily tracking poll. who are americans more confident who can fix the economy? >> well, right now, mitt romney is favored on the economy. 48% trust him on the economy. 44% trust the president. that's the good news if your name is mitt romney. the bad news? a couple of months ago, romney had a 12 point enon this issue. things are tightening up. and you know, it's, this is going to be where the
election is decided. who can handle the economy better? it is the most important issue. all the campaigns, the conventions were a lot of fun but they're not going to determine the election. lori: so you're saying the takeaway here is how you feel about the economy, how your life-style is being impacted and where you think it is going is more important in your voting decision than what you thought of clint eastwood or you thought, you know, the president's speech last night was fantastic or terrible? >> absolutely. first of all, those who are undecided aren't watching the conventions. second of all, the people who are undecided about this race, largely are working class voters. many of them used to be democrats or are still democrats. neither romney or obama connects with them. personal finances are a big issue. where that stands back in the fall of 2008, 43% of the americans said their finances were in good shape. that fell to 35% on the day that president obama took office. and it is just a little bit lower than that today. the numbers aren't so
terrible that barack obama is automatically going to lose but he sure wishes with they were feel americans were feeling better about that irfinances today. lori: you're the best when it comes to those numbers. thank you, for joining us today, scott rasmussen. >> thank you. melissa: lululemon up 60%. apparent i'm i'm the last woman on earth who has not been to the store. lori: i love the pants. you would like them. melissa: okay. can the athletic wear company keep up this pace? is it still a buy? we'll ask the analyst after the break. apparently lori thinks so. lori: there is always a trade on yoga pants. that is segue. they're buying treasurys today, no surprise on the weak jobs data. show me 30-year unchanged. back with more after this. [ male announcer ] let's say you need to take care of legal matters.
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it's law that just makes sense. >> i'm robert gray with your fox business brief. the u.s. economy added far fewer jobs than expected in august. payrolls added 96,000 jobs last month, compared to the 125,000 economists expected. the labor force participation rate fell to its lowest level since september 1981. there may not be much of a rally down on wall street but there is one at google. the tech giant stock hitting a four-year high, back above 700 bucks for the first time since december 2007. nfl season just kicked
lori: breaking news moments ago at a new hampshire event. president obama spoke about the breaking job report. here is what he had to say. >> today we learned after losing 800,000 jobs a month before he took office, businesses added more jobs for the 30th month in a row, 4.6 million jobs. [cheers and applause] that is not good enough. lori: okay, all about how you look at it.
the president went on to say if republicans are serious about jobs they need to get congress to pass his jobs plan. we'll have more on the job situation and the election later in the hour. melissa: so lululemon shares climbing today after the retailer's earnings were up 50% in the second quarter, can you believe that? beating expectations. the stock has been on an absolute tear. look at the chart. it is up 60% year-to-date. does lulu have more room to run or stretching its limits? we have a senior analyst. sam joins me now. this is one of those stocks that makes me really nervous. it keeps rocketing higher. what is your bet? >> we think it will continue to rock. we understand why it makes people nervous however, this company really, only has 112, 115 stores in the u.s. right now. we think that number can grow to over00. they take a very special way
of opening stores through having what is called showrooms and markets when they enter. really learning the market opening the stores. the stores are highly productive. melissa: to your point, how many pairs of yoga pants do you need? how many can you fit in your closet? lori is looking at me like i'm crazy. lori: that is not a question. melissa: is there some part of saturation when lori buys every piece of appeal this store sells? is there some point of saturation? >> maybe but they come out with new stuff all the time and because people like the way it looks and fits and new colors and so forth. people constantly go in and look for what's new. they're in a lot of markets in the u.s. where they're not even in. if you're in new york, of course you think everybody knows about lulu but if you're in st. louis, missouri, people don't really know the brand at all. there are huge opportunities. by trade i'm more of a footwear analyst and people always ask me, how many pairs of shoes a woman needs
in their closet and i would dare to ask you how many you have and how many you keep buying. melissa: right. i would tell you to mind your own business. yeah, absolutely. is there a barrier to entry with lululemon? you see underarmor is a brand that has been really hot and very fashionable. why can't someone else come in and take advantage of this trend? >> well, i think the trend for product is certainly an issue but these guys, their speed to market, they go to market in nine months from inception, to the stores. their competitors go 18 to 24 months. that is part of it. the other part is really the experience you have when you shop at lulu. the, the staff of the stores are exceptional. they really work with you to tell you what works and what doesn't work. you really don't have that kind of experience in those other players. i mean there's great product from underarmor but they don't have retail. with atleita the stuff is
nice. looks more expensive reltestify to what it is and experience of the stores don't live up to what lulu does. melissa: sam, i have to ask you before you go, lori was wondering quietly, have you been in the store? do you have any lulu products yourself? they make men's stuff? >> they make great men's stuff. and when i lose 80 or 90 pounds. so i would love to have it but right now, no. melissa: sam, you are a fantastic sport. thank you for coming on today. we appreciate your time and we'll have you back soon. what a good guy. lori: really was. i was turned on to lulu by my mom. it really crosses demographics. to his point about saturation, an --. melissa: i haven't been there. i'm the last person. i will go this weekend. lori: we're late to check in with nicole. story of our lives here. nicole, what is going on? >> my mom has lululemons. i have lulu lemons. let's move on to coffee. from yoga ware to coffee.
looking at green mountain roasters. their k-cup is going to expire. the patent will expire in the grocery stores. that is obviously part of their revenues. both raw capital and lazard capital are both saying it is okay. really talking about green mountain and the growth potential. lazard in particular says they'redown shifting from a hyper-growth company that they saw great revenue and earnings per share ahead for them. lori: thanks, nicole. melissa: election day is over two months away. up next find out what effect it will have on your wallet according to wells fargo. lori: all kinds of affect that you wouldn't necessarily think off the top of your head. there are losers and winners. a few winners today. back with more after this. [ male announcer ] what if you had thermal night-vision goggles, like in a special opsission?
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lori: election day is two months away. today's jobs report highlights how fragile our economy is. what about your wallet? here is a look at key factors to watch for. we have gary thayer, chief strategist at wells fargo. gary, great to have you. you hear people talking about voting with their pocketbook. if that is the case what should voters keep their eye on in terms of what could infuns influence our -- influence our person falcon miss? >> out come of the election will play a big role in the economy next year. unfortunately we don't know the economy yet. there is lot of uncertainty around the election. what voters will choose is what role they want the government to play in the economy? do they want to move forward with existing policies? are they happy with what we're seeing? will we see
something more of a change. and outcome will affect how we address the fiscal cliff at the end of the year and which party's proposal we'll more likely see adopted. melissa: what policies would help the economy grow faster? >> well, you know, there is a tradeoff. you know, if you have a smaller role for government, you do tend maybe to get more private sector involvement in the economy an maybe more job creation from the private sector. but then again you may not have as much of a social safety net below the economy and might take a little bit of time for the economy to adjust to that. so you know, there's, both parties offer something. they're just different things that voters have to choose between. this election will be a close one we think. lori: but do you have to prepare, fortress up your balance sheet, if you will? because, for example, if dividend taxes go up, or taxes across the board, policy changes, or, you know what i'm saying? we've had
forecasters come on talking about expectations for higher year-end tax-loss selling. things of that nature. there is all the uncertainty out here. we heard it for months and months. so how do we best prepare? >> i think markets already discounted uncertainty part. we see a lot of investors who because of that uncertainty are holding very defensive positions rather than taking a lot of risk ahead of the elections. obviously if we get, you know, more of the same out of washington and we do see the tax changes that are going to raise dividends rates or capital gains rates on taxes, that, after the election we'll probably see a big market impact as people try to adjust for what i think will be the new tax rates after the election. but right now i think we're more in a sort of a storm watch, not a storm warning type of a situation. in other words, we have the preconditions for some potential problems but we don't know exactly what they are. so we can't exactly give the right warning at this point. melissa: i understand the
uncertainty. what is your bottom line prediction where you think the economy heads between now and the election given jobs number we saw today, given direction we have out there. what do you think happens between now and november? >> well, what we're anticipating is more of the same. we're thinking the economy is growing at about 2% rate. we're going to see some modest uptick in inflation, probably before the election. we won't see probably much different jobs numbers than what we saw today. so i think going into the election, what we're going to see is a lot of voters that are going to be looking at the two choices here and i tell you, it's a difficult period for an incumbent party to get reelected in an environment where the economy is weak and sentiment is as low as it is right now. doesn't mean it can't happen but i think voters will play a big role in determining the direction of the economy next year. lori: gary, thanks for your analysis. >> sure. melissa: coming up tonight on "money" we're looking at the history of the fifth
fleet, how it is funded, what it costs to maintain it. now that we're marking the end of an era. they're retiring the enterprise, going out of commission. they filmed "top gun" on there. i mentioned that before. the hunt for red october. joining me senior navy analyst tonight at 5:00 p.m. eastern right here on fox business. you don't want to miss that because i'm trying to build up the audience before lori comes on at 7:00. please join me. lori: you are so --. melissa: naughty? lori: all right. tracy byrnes is about to weigh in. melissa: speaking of naughty. lori: really. here is trace. much more on disappointing jobs report number. hundreds of thousands dropping out of the workforce. why there could be an economic cold war going on between america and china. keep it here on fox business.
what was so outrageous and shocking how many people threw up their hand and gave up. >> it has been going on for so long. tracy byrnes will turn it around in the next hour of the show. she will get the economy back on track, the jobs market tracy: 60 minutes or less. have a good weekend. as the girls said the job market is so bad, nearly 400 million americans dropped out of it last month. only 96,000 jobs were created that is well short of expectations. does it guaranty the fed will take action at its next meeting which is now less than a week away? plus the weak numbers could shape the final stretch of the presidential election. that is just 60 days away. we'll tell you what president obama and gop nominee mitt romney are saying about the dismal american job growth. that is all ahead. and if the united states locked in an economic cold
war with china? the author of a new book says yes. he will tell us why he thinks u.s. companies and political leaders need a completely new battle plan to fight the chinese threat. hmmm. as we mentioned the dow only down about 17, 18 points right now. top of the hour. time for stocks as we do every 15 minutes. we head down to nicole petallides on the floor of the new york stock exchange. hey, nicole. >> hey, trace, good afternoon, everybody. the dow is down 18 points. it is off the highs we saw yesterday. closed at the highest level since december of 2007. today pulling back about 18 points. not really giving back that 244 point gain we saw yesterday. right now the nasdaq has a down arrow. the s&p is up one quarter of 1%. i want to look at a laggard though on the dow jones industrial average. that is kraft. when you look at kraft, they have two kinds of businesses. they have the international business and the north american business. they will be spinning off. that will happen october 1st. when they gave the
projections for 2013 pertaining to snacks and thus all the earnings share was below the analyst estimates. you see it down almost 6% here. this is what we'll be watching. as far as the international company goes, you're talking about a weak gum category. gum is weak while chocolate and business cuts are strong. north america will watch oscar meyer this week. tracy: i buy so much gum alone you think that would help it. more and more americans drop out of the workforce. rich edson joins us now from the white house to break down the numbers. hey, rich, not pretty, huh? >> not really tracy. good afternoon. we're looking at a headline number of 96,000 jobs created in the month of august. that is what the department of labor says, you need 150 to 200,000 to keep up with population growth. on top of that revoices for
june and july showed the economy added 41,000 fewer jobs than first reported over the past few months. look at unemployment rate, 8.3%. falling to 8.1%. seems like good news, the real reason behind it, labor force shrinks. americans stop looking for work. 368,000 folks leaving labor force. white house says you have to look at long-term trend. that we're in better spot than a year ago. the white house and president at least maintain that the economy is still improving. >> today we learned after losing 800,000 job as month when i took office, business added jobs for the 30th month in a row, a total of $44.6 -- 4.6 million jobs. but that is not good ough. [cheers and applause] we know it is not good enough. we need to create more jobs faster. >> he says to do that congress needs to pass his jobs plan. much is spending on state
and local governments and education and science. to that the house speaker john boehner replys in a statement, we need a president and senate with the courage to let go of the failed stimulus style policies in the past and work with republicans on proven pro-growth measures to tackle our debt, address high prices and create a better environment for jobs. what republicans are talking about are lower taxes or low taxes and tax certainty and streamlining regulations. back to you. tracy: rich edson, thanks for doing all this today. rich has been working all day. tell you what, not reporting good news. even before today's jobs report federal reserve chairman ben bernanke said the weak labor market was a grave concern to him. so are today's numbers bad enough to force the fed to act next week? let's bring in gus foshay, pnc financial services group, vp and macro economist. gus, thanks for being with us. two things that bothered me in the jobs report, hourly earnings down one cent, not
a lot but down last month. temporary help which should be up during the summer, kids getting jobs temporarily, that was down too. to me the economy is not improving, is it? >> the economy is adding jobs, no question about that but job growth is below what we need to keep up with an expanding labor force. so we see unemployment rate basically holding steady, a little bit above 8%. tracy: but you have 368,000 people that said no mas, i tried, i tried, there is nothing out there. i would rather sit home and collect checks. >> yeah, we did see a big drop in the labor force. that is disconcerting, no question about that. the unemployment rate fell in august. that is because we had a lot of people dropping out of the labor force. we had decline in the number of people in the household survey which is a separate survey from the payroll survey. we had a drop in employment there. that is worrisome as well. tracy: june revised down, only 45,000 jobs created. the real interesting stat that in june, 45,000 jobs
are created and yet 174,000 people were added to the food stamp program. so i think it seems we're going in the wrong direction, coming into this election, no? >> well, the economy is adding fewer jobs than what we would like to see. typically need about 100 or 125,000 jobs per month to keep up wi growth in the labor force. we've been below that. we added fewer than 100,000 jobs in the last four out of five months that is obviously what chairman bernanke is concerned about what he talked about last week in jackson hole. tracy: talk about more liquidity being put into the market. traders on wall street want to know if they get more liquidity. you say there is what, 50% of the chance of it? >> that's right. i think the for sure the fed will announce they are going to extend the period where they keep the fed funds rate close to zero through the end of 2015. right now they said they will keep it there through the end of 2014. i think odds are 50/50, they will announce another round
of quantitative easing. it is a big step but chairman bernanke said last week he said at this point the benefits outweigh the cost. he had is very concerned about the state of the labor market. tracy: do they really? we've seen with each one of the quantitative easing easings return has been diminished. we need demand increased so people want to buy some stuff. that money will never make it down to that level. >> i don't think that's true. i think we're seeing a turnaround in the housing market, for example. that is in part because of very low mortgage rates the fed reduced through quantitative easing. i think there are room for mortgage rates to come down further, the spread between mortgage rates and treasurys is above the long-term average. if there is qe, particularly if it is targeted toward the mortgage market there is the potential there for boost to the housing market question would really help with growth. tracy: i don't know. i worry about the value of our dollar and the taxes my children will have to pay to
pay all this back some day. gus foshay, pnc financial services group. thanks for being here on this jobs day. >> thank you. tracy: telling you i'm going to have to buy a couple more couches because that's where they're going to be living for the rest of their lives. all right, delta could be taking another step to lowering its fuel costs. the airline is looking into buying oil from north dakota to feed its refinery outside of philadelphia. now in the past the refinery was fed by more expensive brent crude from overseas. as we have reported, delta bought an idled refinery back in june. like most on the east coast it has refined mostly north sea oil which is priced in london. so this is brent crude in the in the lingo and more expensive than the oil priced in america known as wti which the price of north dakota oil is linked to. delta hopes to have the refinery running by the end of the month. by the way, delta last year
spent $11.8 million on jet fuel. it hopes to cut the bill by $300 million. what is really cool they will try to get the oil acrosby rail through our fine country. keep it here at home. stocks are on track for a winning with week to start historically losing month of september. dow is down 19 points right now. we're watching the markets every move this hour. good news. kickoff weekend for the nfl. home of america's most valuable sports teams. we'll tell you how many millions of dollars they stand to earn this season. but first, as we do every day at this time, let's see how oil is trading right now, up 55 cents a barrel. $96.08 a barrel
tracy: it is time to make some money with charles payne. this hour he has a dirty fingernail stock for your portfolio. charles, you talked about this dirty fingernail rally for a while now. >> that's right. it saved us from hitting a double-dip recession. today caterpillar sup big. a lot of companies in part because of news out of china. $15 billion on subways and roads and thinks like that. this particular company i
like today is called mtl. i played it for years. many, many years i've been in the stock. i've always done well but once i got crushed. irony both times i got crushed when putin says something about almost nationalizing the company. tracy: because it is a russian company. >> it is a russian company. i like it because putin is talking the talk. you know what the unemployment rate is in russia right now? tracy: a lot? >> 5.4%. tracy: that is not a lot. >> listen they ha nip late the numbers we do. that is amazing. absolutely amazing. they will do a big project. forever they exported oil and gas to europe. they're saying asian market, asia, the next century, probably the place to so be. i think they're onto something. tracy: stock is down 17% year-to-date. as oppose to the its pierce, rio tinto, not really as risky. why are you going to russia? >> because of unemployment rate. i do think they will spend a whole lot of money. i think they will exploit
the fact they're there in asia which will be the growth engine for the world next 100 years. i like all this stuff. this is $33 stock in january last year. even a move to 10%age wise i would be one of the top money managers of the world. i will add the caveat. i will mention it. it comes down hard and fast. tracy: you have been risky before. >> i'm in cliffs and getting waxed and rio getting waxed. i like this one. tracy: recommending mtl nevertheless. charles payne. >> we'll talk about it when it hits 10. >> that time of day. we go back down to the floor of the new york stock exchange, nicole petallides, the dow is not moving. >> well the dow is not moving but holding onto yesterday's 244 30i7b9 gain. that is something to celebrate right there. the jobs report no celebration. talk about two names on the move. when you talk about pandora and apple. the story is intertwined.
we'll show you some charts. pandora is crushed. down 17, 18% all day while apple is hitting a all-time high. there are reports from people familiar that apple is working on streaming music much like what pandora does and customized to the listeners likes. say you're a fan of the '50s, you will get all the music from the '50s. what will this do? it will hit pandora straight on. as i noted above the 6682 mark today which would be a all-time high for apple. tracy: our stage manager is a fan i of eight at this time's, i know it. nicole, see you in 15 minutes. we'll have more on the story later. dennis kneale will cover it more on pandora. will stocks get a jolt from the fed meeting six days away now? we'll have a leading portfolio manager, wells fargo's margie patel will weigh in.
let's see how the dollar is moving against its foreign currencies as we head out to break. with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.
>> at 20 minutes past the hour i'm arthel neville with your fox news minute. five policemen are dead in syria following two bomb attacks in the country's capital. officers were killed by the outside a mosque in a northern neighborhood of damascus. yosemite national park doubled the amount of people who may have been exposed to the potentially deadly rodent-borne hantavirus. they say roughly 22,000 visitors may have been exposed as they are death from the virus was reported. prince harry returned to afghanistan for his second stint on the front lines. the prince will spend a four-month deployment aboard an apache helicopter gunner. that is your stories for fox business. tracy: that's why i don't
camp. does today's jobs report mean another round of economic stimulus is coming? marge the first line of your report is the report was pathetic all around. >> yes it was. very few jobs added. stagnant wages. stagnant hours. discouraged workers leaving the workforce. not a lot to feel we've hit a turn where we see acceleration in the economy but reflecting what we've seen an negative dote alley from economic numbers past few months. tracy: hourly wages slipping a little bit, temporary help down, all the things you would like to see moving up are not. what does that mean? everyone wants to know if we get more quantitative easing, more liquidity into the market but do we even need it? is it going to help? >> i think we're likely to see something from the fed after these numbers, but i think it is impact on the real economy will be very, very marginal. you might say it has helped
housing a little bit because you lowered mortgage rates but until we have housing prices move up, which the fed can't really control, you really aren't going to see a boom in refinancing and a boom in new house purchases. people are worried about extending themselves. real marginal far as the real economy. tracy: but we'll probably see the stock market move a little bit. interesting you think the high-yield bond sector is great place for people to be these days. how come? >> because the economic backdrop is pretty favorable. the economy is growing, even if it is growing glashly. the very, very low rates that the fed has provided are allowing companies to issue bonds at much lower rates than they were a couple years ago. actually that helped corporate balance sheets and income flows across the board where they can take out high cost debt, replace it with much lower cost debt, helping their cash flow. and because the quality of companies are pretty good.
so i would say the top half of the below investment grade universe is pretty attractive. low risk of default. continuously improving balance sheets. but there you're looking at yields realistic i between 4 1/2 and six 1/2%. not very high historically. tracy: but better than what you get out of a treasury, right? if it is a high-risk because we've had many people with many different takes on high yield on this show alone. you're talking about a bond that has a rating less than bb b-minus, bbb minus that is not very comforting for someone at home to say i will pick up the debt from this company. >> well, that's true but if you look at where defaults, bankruptcy rates have been over the last year or so, where they're likely to be, very low single digits, maybe 2%. very near historic lows. high yield bonds over the one, two year period aren't too risky relatively because defaults will be low. tracy: right.
>> so you get to keep all the yield. tracy: maybe something to be said about the rating agencies being behind the eight ball. margie patel. thanks for being with us today. >> thanks. tracy: i love this story. cocoa la's newest -- coca-cola's newest drink will not come in a bat bottle or can. i will need to squirt. they are introducing drops to be squeezed into water to add fruity flavor. coca-cola is not the first company to offer flavored drops. kraft foods pioneered the company with neocmphçu introdud last year. my kids love neo. coca-cola says the drops will boost consumption of water. ideally for them, dasani water, which saw sales volume rise 13% in the first half of this year. drops which cost $4 a pack will hit store shelves last year. my kids create the craziest flavors and colors but they
drink water. so i'm all about it. coming up the health care industry is rampant with waste. liz macdonald break down the $750 billion problem next. let's look at some of today's winners and losers as we head out to break. and the s&p 500, look, alpha natural resources, that is a charles payne favorite as well as cliffs, both up top.
forced to act and the stimulus will be announced next week. traders at the and nyse. finding out what president obama has to say about today's job report. 90% of the commercial stocks were sold out. how much our companies shelling out to advertisers? we have details ahead. right now, it is 30 minutes past the hour so we have to get a check on the market as we do every 15 minutes. no cool pet wheaties on the stock exchange floor. reporter: i'm here with jason. we are here talking about things all the time. we are talking about apple stock and other stocks as well. i'm going to talk about apple as well. at 525,, do you still like it? >> i still like it.
they are backing up on apple tv because they don't think it's going to be up to their standards come and i think that's great for the shareholder. reporter: you're a shareholder and its new high today. so there you go. >> i think the moves that the ecb made this past couple of days, the market reacted to it and i think it factored into the market. the negative perceptions that investors have of the eu or someone diminishes that, i think it's going okay right now. reporter: the dow jones is up 14,000. what do you think? >> i love it. not only has it factored in the election results, but don't expect much out of the government and they don't depend on what the company is doing. reporter: up by the end of the year? >> i said that january 1 and i still stand by it.
reporter: if your love in the market, your loving what jason has said. tracy: nicole, we will see you in 15 minutes. the campaign for the white house gets underway today. the president obama and gop hopeful mitt romney making stops in iowa and new hampshire today. our very own peter barnes in washington with the latest. reporter: just back from the democratic convention in charlotte, north carolina. had a very good time, i love conventions and, you know, big, big, important issues, including today. jobs. that is what we heard mitt romney and president obama talk about in iowa and new hampshire today. both of them go into these key battleground states and a fox news colleague, bret baier, sat down with governor romney after the jobs report was issued and had this reaction. take a listen. >> for every net new jobs
created, about four people dropped out of the workforce. so we are going in the wrong direction. this is a very difficult time for the american people. wages are also not rising. no increase in wages, declining wages and people being able to find work. people dropping out of the work force. it is another continuation of bleak news on the employment front. reporter: of course, the president fired back. >> if the republicans are serious about being concerned about joblessness, we could create a million new jobs right now. if congress would pass the jobs plan. that i sent him a year ago. jobs for teachers and construction workers and folks who have been looking out -- looking for work for a long time. we can do that. reporter: the romney campaign releasing 15 new tv commercials in iowa and new hampshire and six other swing states. the advertisements are called a
better future. and they are keyed on this are we better off than we were four years ago today. tracy: peter barnes, thank you, see you soon. waiting in the wings. a stunning new report says health care reform could be throwing good taxpayer money. after that, liz macdonald is here with the bottom line. it should not be a shocker to anybody. reporter: that is like a big number, $750 billion, that is the amount of waste in the system that the institute of medicine says the town. this is a very respected, influential group, associated with the national academy of sciences. thirty cents of every dollar is going towards waste. you heard mitt romney just talking about wages being flat. it is because health benefits
that companies are going up because health costs are going up to remember during the debate when people are saying, look, there is waste, fraud and abuse in the system? now we have a price tag. $750 billion. in other words, why raise taxes? why remove that waste remark here are the offenders. excess administrative cost from $190 billion. impatient delivery and care. the debate always was about the health care system on a diet first. bring the excess waste out of the system and cut the fat before you talk about raising taxes or medicare cuts. tracy: is nothing to stop it. keep pushing people off. there's nothing in place.
>> watermark exactly. that is the most important question and point. the institute of medicine just that everyone needs to sit down and talk about this and figure out how to stop this problem. health care will solve this problem. there's more to the pentagon pentagon budget. it would basically cost of uninsured and stretch over 10 years come at a 750 billion for one-year loan and waste. tracy: liz macdonald, so glad you are on. reporter: $750 billion is the number to follow. tracy: coming up, a new book says the united states urgently needs a new strategy to fix china's economic prowess. let's take a look at how the 10 and 30 year treasuries. the ten-year treasuries is down three basis points, 1.5%.
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it now expects revenue to come in at $13.2 billion. that is $1 billion below wall street estimates. this is the second time in three months that intel has cut its forecast because of weaker than expected demand. sears and kmart are following in the footsteps of toys "r" us. they are dropping today. the two stores will offer layaway year-round. customers have the opportunity opportunity to put items somewhere where most of their stories. that is the latest from the fox business network, giving you the power to prosper
my next guest says with china, it is nothing short of a cold cold war. mr. devaney has written strategic capitalism, the new economic journalism unshed strategy for winning the cold war. he is a professor at wharton technology school of business. thank you for being with us, sir. it is my understanding that china is running out of money. they are not buying homes as quickly. banks are struggling that make loans. it seems that they have a little bit of a financial crisis on their hands. yet you are saying that they should be a little scared? >> yes, i am. i am saying that because of her recent trip i took to china where i saw how powerful the chinese government was to manage a lot of these crisis is. the prices of homes are going down in china to have a soft
landing to prevent the kind of bubble that crippled japan in the 1990s. so i think that china is actually in a much stronger position to deal with this problem than the united states government is. tracy: is it because they are managing numbers and expectations and things like that and they have their hands in the chrystie chart? is that is why you think we are at a tipping point with them? >> well, i think that the tipping point is that they have invented a new form of capitalism is undermining the united states. they are undermining the ability for us to have a loss of the great authoritarian state that can make decisions without any consultation with the people. and they are undermining our
global spirit through their support of north korea, pakistan, syria, and iran. all of which are sucking up tremendous resources from us and making us waste our money and time. tracy: they are cheating, basically and we have to fight back. how do you fight back with cheaters? >> well, in this case, i don't think negotiating is going to work and that is evidenced by clinton's failure to get any kind of agreements from the chinese. so we cannot expect the chinese to simply evolve to become americans. they have 5000 meters of their own culture, history, and desire for global hegemony that we are not going to change since we like trading with them. how do we fight back to answer your question directly, number one, i think that we first have to develop more independence. more independence from china and
fix our financial situation at home so that we are able to fight more aggressively. number two, i think we need to reinvent our former capitalism. number three, i think we have to go on the offense by backing the center of gravity. tracy: i think a lot of people would agree with you, sir. unfortunately, it seems like a very tough road. we have a lot more government involvement then you certainly think we need. mr. d'aveni, author of transport. thank you for being with us, sir. >> thank you. as nicole mentioned earlier, we are going to talk about more of this. apple apple already commands a significant share of apple tablet info market. could they be making a move to take over radio? dennis kneale is covering the story two these days when apple sneezes, some don't catch a cold, some chechen -- ketchum on
it. apple is going to be seeking deals with music labels. apple radio service, they can give you all of your applesauce on any device that you want. their prime target is pandora. almost 55 million active users in the recent survey says that more adults say they listen to music on pandora then apple itunes. tracy: really? some retailers are ambivalent about this? how come? >> apple control pricing and they got huge control over the entire music industry. if you are a music label, are you really going to let them do this on internet radio also? reports that apple tv, which we are hoping for by the fall has been pushed back because apple is having a hard time
negotiating with hollywood studios. tracy: dennis the. tracy: dennis kneale, thank you very much. all right, we are going to go back and check with nicole petallides on the new york stock exchange. reporter: talking about some stocks hitting a new all-time high today, stocks in beauty like atla and we are also going to look at a firearms firearms company, smith & wesson. sales have been surging ahead of the current administration's election coming into the fall. concerns may be about regulations getting tighter and some of these gun companies, both of which have had great earnings and sales, and great stocks at a new high. tracy: thank you, nicole. we will see you in 15 minutes.
who is the most valuable in the nfl? might will breakdown the winners next. but first let's take a look at some of the winners and losers on the nasdaq. up top. [ male announcer ] if you believe the mayan calendar, on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans?
cme. reporter: actually we are getting a big boost across the board. oil is up, most of the major commodities are up. looking at the markets for us, what do you make of this reaction that we are seeing? everything is getting a bounce around here now? >> i think that everything is a little overblown. they weren't terrible, but numbers, either. the markets anticipated, you're seeing asset plans right now. reporter: but because those jobs report was so bad, traders believe that we are going to get dollars going down and commodities going up. >> that is absolutely the case. even if there is disappointment and there is further qe, is it not to justify the levels that we have seen in anything. certainly not the equities right now and there should be a pullback. reporter: old getting a 35-dollar boost to date. >> it is. and you have the qe to worry
about the value eroding. another thing to keep in mind is that the dollar is down against the euro as well. if they ease in europe, and they're going to have to ease, that's where you have to change as well. reporter: you are confusing even more. long-term, is the trade up for the major commodities? >> i will say no because i don't think these is coming. i am one of the few people that don't think it's coming in september. reporter: it is good to get a contrarian opinion in the mix. thank you and have a good weekend. back to you. we have all sides presented on the floor. tracy: i love it. he said in september. he didn't say it's not coming at all. sandra smith, have a great weekend. the dow jones down only three points. i told you i was going to bring it back up for you. football season is finally here and she took it off, 2012 nfl team valuations. the top of the chart is worth
over $2 billion. joining us now is a forbes executive editor and cohost of sports money. mike, you tell everybody what is the most valuable team? >> the dallas cowboys traded for $2.1 billion for it if you want to know one simple reason why, the team raked in over $200 million per year in sponsors and revenue. that compares to about 20 million for the average nfl team. tracy: at stadium, the largest domed stadium in the world, cost over $1 billion. i'm not mistaken, arlington agreed to raise taxes to pay for? >> just come in and helped jerry jones funded. if you are a family of four, the average ticket price and you want to pay for parking and concessions, it's going to cost you $635 for one day. that compares to $444 the league average. tracy: you don't even get instant replay.
>> they do have a great video board there. tracy: oh, my goodness. i just learned that on the nfl shop.com, tony romo's jersey is the number-one selling item. what is it about the cowboys? >> jerry jones has done a great job despite not going to the title game in 16 years in building a national brand, they are a national team. merchandise sales were meant to mention, they were the most popular team in the nfl nationwide. that is how well he has done building the brand. tracy: you have the nfc east teams, most of them are in the top five, too, right? >> that's right. new stadiums for the giants and jets. that leaves the higher ticket prices for some sweet revenue for club seats, the new england patriots have a great stadium,
gillette stadium that is pretty new. the washington redskins have a humongous stadium since buying the redskins several years ago, dan snyder added expand revenues. tracy: let's talk about football in general. 90% of advertisements for the super bowl has sold already. there is a resurgence in football, is in their? >> not just football, the regular season as well. the national tv revenue that makes the average team with $1.1 billion because that money is split evenly among all 32 teams. if you look at what has happened, happened with tv rights, including espn, they are going to pay $3 billion for the rights for advertising revenue, which is going to be about $3.5 billion. on top of that, espn also gets a monthly fee in excess of $6 per subscriber for people to get espn. the cable companies are going to
pour that over. it's a very profitable business for the networks and that is why they keep paying more for the nfl. tracy: mike, you have to keep coming back and talk about this. my theory is that everyone is watching all these games to see how the players are doing. michael ozanian. thank you so much. the dow jones only down two points. i almost got it up to the green for you. liz claman will take it right up through courier. she has a money manager who says for the dow and s&p. the economic surprise indicator is the one to watch. she will explain what it is. countdown to the closing bell is next.
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